estimate has a relative standard error of between25% and 50% and should be used with caution

SUMMARY OF FINDINGS

INTRODUCTION

This publication presents final results, in respect of the 1999-2000 financial year, from an Australian Bureau of Statistics (ABS) survey of employing businesses mainly involved in the plant and goods hiring industries. These businesses are classified to Class 7743 (Plant Hiring and Leasing) or Class 9519 (Personal and Household Goods Hiring) of the 1993 edition of the Australian and New Zealand Standard Industrial Classification (ANZSIC). The survey did not include:

non-employing businesses;

businesses mainly retailing plant and goods, which also hire plant and goods as a secondary activity;

businesses mainly hiring transport equipment; and

businesses which mainly hire plant and equipment with an operator. However, because of the close alignment of crane hire to the plant hiring and leasing industry, all employing businesses mainly involved in the hire of cranes were included in the survey.

SIZE OF THE INDUSTRY

At the end of June 2000, there were 1,332 employing businesses involved in the two hiring industries, comprising 923 businesses in the plant hiring and leasing industry and 409 businesses in the personal and household goods hiring industry. These businesses operated from 2,124 outlets, with 1,542 outlets located in capital cities and 582 outlets located in non-metropolitan areas.

Employment of the two hiring industries at the end of June 2000 was 16,728, with businesses in the plant hiring and leasing industry having employment of 13,235 and businesses in the personal and household goods hiring industry having employment of 3,493.

The total income for businesses in the two hiring industries during 1999-2000 was $2,606 million, of which 64% was accounted for by the 43 largest businesses. Total expenses of $2,314 million were generated by businesses in the plant hiring and leasing and the personal and household goods hiring industries.

The industry value added of the two hire industries was $1,569 million. This comprised $1,337 million from the plant hiring and leasing industry and $233 million from the personal and household goods hiring industry.

SOURCES OF INCOME

During 1999-2000, the total income for businesses in the two hiring industries was $2,606 million, which was an average of $2.0 million per business.

The majority (95%) of income from hire services for the plant hiring and leasing industry was sourced from the business sector, with the remaining income (5%) obtained from the household sector for personal use.

EXPENSES

During 1999-2000, businesses in the plant hiring and leasing and personal and household goods hiring industries generated total expenses of $2,314 million. The largest single expense item for these industries was labour costs of $732 million, which accounted for 32% of total expenses.

PROFITABILITY

For 1999-2000, the two hiring industries recorded an operating profit before tax of $249 million, which represented an operating profit margin of 9.9%. Businesses in the plant hiring and leasing industry had an operating profit margin of 10.4% compared to 7.2% in the personal and household goods hiring industry.

EMPLOYMENT

At the end of June 2000, there were 16,728 persons working in the two hire industries, comprising 13,235 persons working in the plant hiring and leasing industry and 3,493 in the personal and household goods hiring industry.

EXPLANATORY NOTES

INTRODUCTION

1 This publication presents final results, in respect of 1999-2000, from an Australian Bureau of Statistics (ABS) survey of 767 employing businesses in the plant and goods hiring industries.

SCOPE

2 The scope of the survey was all employing businesses recorded on the ABS business register and classified to Classes 7743, Plant Hiring and Leasing or 9519, Personal and Household Goods Hiring, of the Australian and New Zealand Standard Industrial Classification (ANZSIC). This survey did not include:

non-employing businesses;

businesses mainly retailing plant and goods, which also hire plant and goods as a secondary activity;

businesses mainly hiring transport equipment; and

businesses which mainly hire plant and equipment with an operator.

3 However, because of the close alignment of crane hire to the industry, all employing businesses mainly involved in the hire of cranes were included in the survey.

IMPROVEMENTS TO COVERAGE

4 Data in this publication have been adjusted to allow for lags in processing new businesses to the ABS business register, and the omission of some businesses from the business register. The majority of businesses affected, and to which the adjustments apply, are small in size.

5 Adjustments have been made to include new businesses in the estimates in the periods in which they commenced operations, rather than when they were processed to the business register.

6 Further adjustments have been made for businesses which had been in existence for several years, but, for various reasons, were not previously included in the ABS register.

8 The unit for which statistics were reported in the survey was the management unit. The management unit is the highest-level accounting unit within a business or organisation, having regard to the required level of industry homogeneity, for which a set of accounts is maintained. In most cases it coincides with the legal entity owning the business (i.e. company, partnership, trust, etc.). However, in the case of large diversified businesses, there may be more than one management unit, with each coinciding with a 'division' or 'line of business'. A division or line of business is recognised where separate and comprehensive accounts are compiled for it.

REFERENCE PERIOD

9 Data contained in the tables in this publication relate to hire industries businesses which operated in Australia at any time during the year ended June 2000. Counts of businesses include only those businesses that were operating at 30 June 2000.

RELIABILITY OF THE DATA

10 The estimates in this publication are subject to sampling and non-sampling error.

11 The estimates in this publication are based on information obtained from a sample of businesses in the surveyed population. Consequently, the estimates in this publication are subject to sampling variability, that is, they may differ from the figures that would have been obtained if all units had been included in the survey. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because only a sample of units was included.

12 There are about 2 chances in 3 that a sample estimate will differ by less than one SE from the figure that would have been obtained if a census had been conducted, and approximately 19 chances in 20 that the difference will be less than two SEs.

13 Sampling variability can be measured by the relative standard error (RSE) which is obtained by expressing the SE as a percentage of the estimate to which it refers. The RSE is a useful measure in that it provides an immediate indication of the percentage errors likely to have occurred due to sampling, and this avoids the need to refer also to the size of the estimate.

14 The following table contains estimates of RSEs for a selection of the statistics presented in this publication.

RELATIVE STANDARD ERRORS FOR TABLE 1, KEY FIGURES

Plant

Personal and

Hiring and

Household

Total Hire

Leasing

Goods Hiring

Industries

%

%

%

Businesses at end June

6.9

4.5

5.0

Locations at end June

Capital city

6.3

8.2

5.1

Other (non capital city)

11.5

7.1

8.5

Total

5.5

5.9

4.3

Employment

Working proprietors and partners

27.6

14.9

16.2

Employees

Permanent full-time

4.6

2.9

3.8

Permanent part-time

12.2

5.2

7.7

Casual

6.7

6.0

5.0

Total

4.2

2.8

3.4

Total employment

4.2

2.7

3.4

Income

Hire services

Hired to households for personal use

7.8

2.5

3.3

Hired to business sector

4.6

2.5

4.2

Total

4.5

1.9

3.8

Other goods and services

4.8

6.4

4.5

Other

7.3

3.0

6.2

Total

4.1

1.9

3.5

Expenses

Labour costs

4.0

2.3

3.4

Depreciation

4.7

1.6

3.8

Re-hire/sub-hire of goods

7.5

10.4

6.8

Other

5.0

1.9

4.4

Total

3.8

1.9

3.3

Operating profit before tax

9.6

4.5

8.6

Operating profit margin

6.9

4.0

6.3

Industry value added

4.1

1.8

3.5

15 As an example of the above, an estimate of total income for the hiring industries is $2,606.0 million and the RSE is 3.5%, giving a SE of $91.2 million. Therefore, there would be 2 chances in 3 that, if all units had been included in the survey, a figure in the range of $2,514.8 million to $2,697.2 million would have been obtained, and 19 chances in 20 (i.e. a confidence interval of 95%) that the figure would have been within the range of $2,423.6 million to $2,788.4 million.

16 Errors other than those due to sampling may occur because of deficiencies in the register of units from which the sample was selected, non-response, and imperfections in reporting by respondents. Inaccuracies of this kind are referred to as non-sampling errors and they may occur in any collection, whether it be a census or a sample. Every effort has been made to reduce non-sampling error to a minimum by careful design and testing of questionnaires, efficient operating procedures and systems, and appropriate methodology.

ACKNOWLEDGMENT

17 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated; without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.

GLOSSARY

Capital city

Capital cities are Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Canberra and Darwin and all suburbs of these cities.

Casual employees

This item refers to employees not entitled to take paid leave.

Employees

This item includes working directors, and other employees working for a business during the last pay period in June. Employees absent on paid or prepaid leave are included. This item excludes working proprietors and partners of unincorporated businesses.

Employment at end June

This item includes working proprietors and partners, working directors, and other employees working for a business during the last pay period ending in June 2000. Employees absent on paid or prepaid leave are included.

Full-time employees

Employees who work 35 hours per week or more.

Industry value added

This item represents the value added of the industry to the economy and is calculated as the sales of goods and services plus government subsidies and changes in levels of trading inventories, minus purchases of goods and selected expenses.

A location is a physical site from which a business operates on a relatively regular basis.

Operating profit before tax

This item refers to a measure of profit (or loss) before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid). It is derived as total income minus total expenses, plus closing inventories minus opening inventories.

Operating profit margin

This item refers to the percentage of sales of goods and services which become profit after all operating expenses have been deducted. It is derived by expressing total operating profit before tax (OPBT) as a percentage of sales of goods and services (i.e. OPBT*100/Sales of goods and services).

Permanent part-time employees

This item refers to permanent employees who work less than 35 hours per week and were entitled to paid leave.

Permanent full-time employees

This item refers to permanent employees who work 35 hours per week or more and were entitled to paid leave.

Rehire/subhire expenses

This item refers to the expense incurred when a business hires goods from another business on behalf of a customer.

Wages and salaries

This item refers to payments accruing to all employees during the financial year including provisions for employee entitlements, severence, termination and redundancy payments. Drawings by working proprietors/partners are excluded.

Working proprietors and partners

This item includes working proprietors and partners who own/operate their own business in a profession or trade (a sole proprietorship) or, along with one or more partners, operate a partnership. Working proprietors and working partners as owners are not considered to be employees of the business.